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8120RE: [tips_and_tricks] Re: Legal Fictions

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  • Dave Miner
    Apr 6, 2005
      Gary --
      I don't mean to get picky on you, but you are wrong about the sequence of events.  The IRS cannot contact you about wanting a return from you unless an IMF already exists for that year and there is no return logged in it.  The agent that contacted you had no way of knowing there was no return on file without looking in the IMF.  The three files that would have reflected the lack of a return all take their data from the IMF.  And the IRS cannot send you any letters at all without an IMF because the ACS (Automated Collection System) keys off the IMF -- no IMF, no letters demanding returns or taxes.  Each and every contact with you is logged in the IMF.  And the creation of an SFR requires the IMF to be in existence, because there several steps that must be logged in the IMF long before there can be a Substitute for Return created.  The IRS cannot perform an examination unless a Request for Examination is entered in the IMF as a Transaction Code of 420 or 424.  As a result of the TC 420 or TC 424, the computer automatically spits out several other actions resulting in the examination.  All this is automated and tracked by the IMF.
      I cannot speak for why the IRS told you there were no IMF after 1991.  If there is no action on an IMF for two years, it is sometimes moved to retention and cannot be retrieved by computer.  It is on microfiche or microfilm, perhaps, but not always.  This is odd -- normally the IRS would state that there were no IMFs BEFORE a particular year and not AFTER a particular year.  If the lien you mentioned is for year 1990, it is possible that the IRS has changed you IMF and it has been dropped from the system.  IF so, you will not receive anything concerning other later tax years.  But if you are receiving anything concerning years since 1990, then you still have an IMF for the years involved in the contact.
      I have requested at least a dozen IMFs for 2004.  All were sent to the client by the IRS and not one had any module info or transaction info because none of the clients had sent in any returns and no collection activities had been initiated for 2004 yet.  All the IMFs were created with the entity portion completed, which is just copied from the prior year.
      Yours in financial freedom,
      Dave Miner

      From: gary [mailto:gary2666@...]
      Sent: Wednesday, April 06, 2005 1:20 PM
      To: tips_and_tricks@yahoogroups.com
      Subject: Re: [tips_and_tricks] Re: Legal Fictions

      Thanks for the explanation, I have some comments below.
      ----- Original Message -----
      Sent: Wednesday, April 06, 2005 1:13 AM
      Subject: RE: [tips_and_tricks] Re: Legal Fictions

      Gary --
      Good question, but its logic will lead you to what I have been saying.  I will explain, but first I will correct a fundamental misunderstanding you have concerning the IMF.
      The IMF is generated every year regardless of whether or not you file a return, on or about the first week in January.  The IRS creates the entity portion based on the previous year's IMF.  The module and transaction portions will remain blank until you file a return.  If you request your IMF-Specific in February of any given year, you will receive an IMF with the entity portion completed and the module and transaction portions will be blank.  If you do not file, your IMF will remain this way for usually two years.  Then the IRS will process a Transaction Code 424, which starts the process of completing the SFR with lots of other transactions that add taxes and penalties and interest.
      *** This is not what happened in my case.  The last year I filed was 91 (tax year 90) and there was a W2 during 91 but I did not file in 92.  About the end of 92, after some letters requesting that I file a return they went ahead and did the SFR and an IMF was created for that year.  They did an exaimination and using the Bereau of Labor Statistics tables, they imputed income to me of 38k (W2 was for about 8.5K).  Several years later, I requested copies of my IMF specific for 90 through 95 and was told that no IMFs existed after 91.
        Stat Codes recording the collection letters the IRS sends to you will be added over the next few months to a couple of years.  Sooner or later, the IRS will make an attempt to lien or levy your assets if the IRS deems you to be profitable (there are two fields in the IMF that render a "score" that tells the IRS if you would be a profitable account to pursue).  If the IRS deems you to be not profitable (assets hidden, or difficult to snatch), then sooner or later the IRS stops pursuing you for that year.  After 2 or 3 years of non-filing, the IRS will add everything together and go after you regardless of your assets, simply because the total amount due (in the eyes of the IRS) is large enough to warrant serious collection efforts.
      *** They have filed their notice of tax lien (I don't own any property and don't have a bank account and don't work for a wage) and the only thing I get from them about once a year is a bill showing what they say I owe now. 
      The IMF is created 2-3 years before the SFR is created, and maybe more.
      *** It appeared to me that they were created about the same time in my case.
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